Newlink Co. Ltd, the owner of crypto exchange Cashierest, seems to be in trouble as Aone, a law company from South Korea, filed a lawsuit against it. The reason behind this lawsuit is the firm’s price-pump schemes involving token issuance. The suit claims that Cashierest’s token, which pays dividends and refunds transaction fees to investors, breaches the country’s capital markets law. On October 5, 2018, Aone filed a complaint in Seoul Central District Court against Newlink.
Kim Dong-joo, Seocho branch Lawyer, Aone, stated that his company is filing charges against the crypto exchange for diverging from the public interest in order to bring back the health of the cryptocurrency market. The suit states that Cashierest is involved in two unlawful acts. According to the news outlet, Cashierest issued its “dividend coin” called CAP on the capital market. This is a breach of the securities issuance procedure, which is stated in Article 119 of the country’s Capital Markets Act. The second issue is a breach of Article 178, which disallows for unfair trading.
On a similar note, GMO Internet Group, a Japanese firm, recently disclosed its plans to introduce a yen-pegged stablecoin, GMO Japanese Yen. Reportedly, the firm is already active in crypto exchange and mining hardware business. With stablecoin, GMO Internet Group will be rolling out its third crypto project. Earlier this week, the firm announced that it is in full-scale preparations for issuing stable coins of virtual cash.
GMO Internet Group added that it has taken this initiative for entering into the “settlement” area of virtual currency business. The firm detailed that GMO Japanese Yen is supposed to be rolled out through the unified brand “Z.com” in the overseas policy of the GMO Internet Group. It will be a “yen-pegged currency” associated with the Japanese yen. Currently, there are about 57 stablecoins available globally. About 23 of these stablecoins already are in circulation.